I have been doing online banking since 2003. I can’t actually remember the last time I’ve had to go into a branch to do anything other than cashier’s checks.
Technology makes it so that you can deposit a check at 9 PM (or 3 AM if you want) after I’ve gotten the kids in bed.
My parents are old-school. My mom really hasn’t trusted doing anything related to her money, but I even think she is starting to come around.
When it comes to technology, some of the basics of life just keep getting easier and easier. For example, online banking is a fantastic way to save money each and every month.
When budgets are tight and each dollar you save helps make life easier, it makes sense to investigate all your options – including online banking.
Here’s how to use online banking to save money.
When you sign up for online banking, many banks reduce and often eliminate fees
This is because they save money when you use online banking. They don’t have to hire as many bank tellers and they can hang onto the money longer, which helps them generate more interest and revenue. Fewer fees each month means money in your pocket. My bank has also partnered with various ATM networks so when I’m out and about and need cash, I don’t have to pay any fees.
Online banking also helps you hold onto your cash longer
When you pay bills via your online banking account, the transaction generally takes a day or less. That means instead of writing a check and licking a stamp and mailing your check a week or two before it’s due, you can pay the bill just a few days ahead of time. You earn more interest on your cash. That’s always a good thing.
You don’t have to buy stamps and envelopes to pay your bills
At the price of postage, that savings can add up. Plus, no waiting in line at the post office!
You can set automatic bill paying reminders or deductions and payments so you never miss a bill
This means no more late fees! This also means that you save time not having to sit down and write out checks each month (and remember to order checks when you’re about to run out).
You don’t have to mail any account numbers, putting yourself at risk for identity theft
Most banks and online bill pay systems have incredible security. By utilizing an online bill pay system, you may be at less risk for identity theft which can be time-consuming and expensive to resolve.
Online bill pay makes it easier to stick to your budget
When you manage all of your accounts from a single point, it’s easier to see where you’re spending your money. It’s easier to stay on budget.
And many online bill pay systems are easy to integrate into your favorite budgeting apps like Mint or YNAB, so can always know exactly where your finances stand.
Online banking saves you from ever having to drive to the bank again
This of course saves you time, but it also saves you gas money. It may not be a lot but it all adds up. This might be my favorite reason for loving online banking. No more drive-thru lines!
Many online banks offer extremely competitive rates
You can open an account right online and not only save money, you can actually make more money.
No extra charges
When you want to transfer money with a standard bank, you either have to go to the two banks and manage the transfer manually or you can wait for a wire transfer. The latter generally costs quite a bit and it takes time.
Online, all you have to do is click a few buttons and you’re good to go. Some banks charge a small fee for online bank transfers, while others provide it for free. Check on your bank’s fees and services.
Online banking is a smart way to go if you want to save money. It’s the way of the future. It’s easy, it’s safe and it’s cost-effective.